Transportation Dictionaries

Bilateral Clearing Agreement

A bilateral clearing agreement is a government-to-government reciprocaltrade arrangement whereby two nations agree to a trade turnover ofspecified value over one or more years. The value of the products tradeunder the agreement is denominated in accounting units expressed in majorcurrencies -- such as clearing U.S. dollars, clearing Swiss frances, etc.Exporters in each country are paid by designated local banks in domesticcurrencies.